Land supply and residential allotment approvals are a key indicator of house price growth.

The relationship is inverse.

The more the approvals and supply, the lower the chances of house price growth.

Moreton Bay, Ipswich and Logan is where most investors have invested in South East Queensland in the last 5 years.

These are also the same locations that have had no or very little growth compared to the other local government areas within SE Queensland. The table explains why – this is where the most supply has been approved.

Driven somewhat by many popular Buyer Agents (you will have seen their Facebook ads) looking only at surface level data (past growth, vacancy, yield, population growth), these investors have missed out on the double digit gains available in other parts of SE Queensland and other parts of Australia.

Remember, data doesn’t lie, and leading indicators are powerful ways to buy in an area with high growth and high income.

Go beyond the surface level information out there. It doesn’t help anyone. A “little bit” of knowledge is dangerous and can lead to big mistakes.

Go deep. Go precise. Go with the data.

Reference: Mutasik